Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, has chaired the first meeting of the General Budget Committee, held at Qasr Al Watan.

The meeting was attended by Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Sheikh Abdullah Bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, Mohammed Bin Abdullah Al Gergawi, Minister of Cabinet Affairs, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Abdulhamid Saeed, UAE Central Bank Governor.

During the meeting, the committee discussed the general budget of the Union for the 2020 fiscal year, as well as other topics that include the development phases of the budget and the draft general budget for 2021.

The committee presented the progress of the budget’s implementation and related cash flows, in light of the financial updates of federal authorities and the unprecedented measures taken by the federal government to contain the coronavirus, COVID-19, pandemic.

The Ministry of Finance was commended for its efforts to draft the budget for 2021, according to the best global principles and practices and through remote coordination with relevant federal authorities, as well as to implement all strategic projects as part of the 2020 budget, despite the exceptional global economic circumstances. The committee also stressed the importance of continuing positive improvements and maintaining the level of services provided to the entire community, in light of the unexpected conditions witnessed by the country and the rest of the world.

The budget’s expected cash flows were also presented, in light of the financial information provided by federal authorities, as well as developments related to the draft 2021 budget.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, recently approved the establishment of the committee, headed by Sheikh Hamdan bin Rashid, with Sheikh Mansour Bin Zayed being appointed as the committee’s vice president, and with the membership of Sheikh Abdullah Bin Zayed, Al Gergawi and Al Tayer.

Meanwhile, the Ministry of Finance announced today the launch of the second phase of government entities to transition to accrual accounting, building on the success it achieved in the first phase of the programme, based on its efforts to raise the effectiveness of financial planning in the country in accordance with international best practices.

The transition to accrual accounting represents a critical step that increases the efficiency of the federal budget and improves public financial management in the country. The second phase of the programme included the Ministry of Justice, the Ministry of Human Resources and Emiratisation, the Federal Competitiveness and Statistics Authority, and the Federal Authority for Government Human Resources.

Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, stated that launching the transition programme is a turning point in achieving the Ministry of Finance’s strategic goal of “raising the efficiency and effectiveness of budget implementation and managing the financial position and cash flows of the federal government.”

He indicated that the federal government is about to reach the final stage, where only the third group of entities - scheduled to launch at the beginning of 2021 - remain, for the transition programme to be complete.

He said, “The Ministry of Finance is keen to continue cooperation and coordination with federal entities to improve government work and enhance resource management efficiency. Transitioning and adopting accrual accounting would strengthen the country’s leading position in global competitiveness indices, and will serve as a concrete indicator of the government’s standing among the world’s leading governments in applying the best management methodologies and government accounting standards.”

To develop government financial work and improve federal government entities’ efficiency and performance at par with the best international standards, the ministry recently held a virtual training workshop on the transition to accrual accounting. Specialists in assets, revenues, liabilities, expenses and closures from the Department of Financial and Administration Affairs, along with 429 ministry and federal government entities attended the workshop, which sought to raise awareness on the federal government programme to adopt accrual accounting.

Meanwhile, Abdullah bin Touq Al Marri, Minister of Economy, has held a virtual meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund, IMF, with the aim of discussing an integrated partnership between the UAE and IMF to develop and analyse economic policies.

Moreover, the partnership focuses on drawing comparisons between macroeconomic models; formulating scenarios and forecasting growth trends; and developing and qualifying national talents in these fields.

WAM